PaintSquare.com


The First Word in Protective & Marine Coatings

A Product of Technology Publishing / PaintSquare
JPCL | PaintSquare News | Durability + Design | Paint BidTracker

Power Plant Coating Systems: Selecting and Sourcing

Paint and Coatings Industry News

Main News Page


Sherwin, PPG to Buy Back 30M Shares

Friday, October 21, 2011

More items for Coating Materials

Comment | More

Seeking to reassure and reward investors, both The Sherwin-Williams Co. and PPG Industries announced plans Friday (Oct. 21) for major stock buybacks along with their regular quarterly dividends.

On the eve of releasing its third-quarter financials, and following a difficult second quarter, Sherwin-Williams’ board authorized the repurchase of up 20 million shares of common stock—an amount that, in full, would be close to one-fifth of its common stock outstanding.

 Sherwin-WIlliams

 Sherwin-Williams

The Global Finishes Group helped Sherwin-Williams in the second quarter. The Q3 report is due Tuesday.

The world’s fourth-largest paint and coatings company also declared a regular quarterly dividend of 36.5 cents per common share, payable Dec. 2 to shareholders of record on Nov. 18.

Meanwhile, fresh off a strong third quarter, PPG said it would buy back up to 10 million shares of its stock and declared a dividend of 57 cents per share, payable Dec. 12 to shareholders of record Nov. 10.

Sherwin-Williams: Ups and Downs

Sherwin-Williams’ buyback authorization is its first since October 2007, when the board authorized the repurchase of up to 30 million shares. As of June 30, the company had 106.3 million shares outstanding and a remaining buyback authorization of 4.15 million shares. In the second quarter, it bought back 500,000 shares.

Despite strong sales in protective and marine coatings, the Cleveland-based company was hammered in the second quarter by raw materials costs. Quarterly profit and earnings both declined, and the company cut its full-year profit forecast.

The third-quarter report is due out Tuesday (Oct. 25).

Sherwin-Williams’ shares recently traded at $79.44, up 2.7%, but  “the outlook for its retail paint business remains uncertain as consumer spending and the housing market’s recovery has been uneven,” Dow Jones Newswires reported this week.

Crain’s Cleveland noted that the company’s stock has fallen 7.7% this year.

Calming Investors

Many companies have been expanding their stock repurchase plans in the wake of the market’s August crash and continuing volatility.

Like dividends and stock price increases, share buybacks allow a company to return wealth to shareholders. In a repurchase, a company buys back its shares from the marketplace, reducing the number of outstanding shares and thereby increasing the ownership stake of each investor.

Buybacks also improve a company’s price-earnings ratio, a key indicator of the company’s value.

Sherwin-Williams said its repurchases “will be made from time to time for general corporate purposes.”

“We’re regular buyers of our shares and have been for many years,” said company spokesman Mike Conway. The latest repurchase announcement is in keeping with the practice, he said.

PPG: ‘Reward Our Shareholders’

PPG’s announcements came a day after it released a strong third-quarter report that showed an 11 percent increase in net sales and the fifth consecutive quarter in which it bested its prior quarterly earnings record.

The dividend declared Friday was PPG’s 453rd consecutive dividend payment and its 40th consecutive year of increasing its annual dividend payment. PPG, the world’s second-largest paint and coatings company, has paid uninterrupted annual dividends since 1899.

 PPG CFO David B. Navikas
Stock repurchases are “are an excellent means to reward our shareholders,” said PPG CFO David B. Navikas.

PPG last authorized a repurchase program, for 10 million shares, in October 2010. About 1.7 million shares remained as of Sept. 30, the company said. PPG said the new repurchases would occur “from time to time without prior notice.”

“In the three years since PPG completed the SigmaKalon acquisition in 2008, our average annual cash from operations grew by nearly 30 percent versus the prior five-year average, providing us with additional cash to grow earnings and return to shareholders,” said David B. Navikas, PPG senior vice president, finance and chief financial officer.

“Since the beginning of 2010, we have used a portion of our expanded cash position to repurchase about 16 million shares of stock, reducing PPG’s outstanding share count by nearly 10 percent, as we believe such repurchases are an excellent means to reward our shareholders.”

   

Tagged categories: Coatings manufacturers; Finance; PPG; Sherwin-Williams

Comment Join the Conversation:

Sign in to our community to add your comments.

Wasser High-Tech Coatings Inc.
Wasser Coatings Protect

some of the most important bridges in the country; learn about our NEPCOAT-approved system and our entire range of MCU & Polyurea coatings. 1-800-627-2968 www.wassercoatings.com


Sherwin-Williams

Sherwin-Williams
Our 3,500 locations give you a level of service that is simply unmatched.


International Paint LLC
A Long Track Record of Success

  • Polyurethanes
  • Linings
  • Epoxies
  • Zincs
The Power to Protect™
1-800-589-1267


BASF
New resins from BASF will have metals loving water:

Excellent corrosion resistance, low VOC, high gloss, thin films basf.us/industrialcoatings
polyorders@basf.com
800-231-7868


Carboline Company
Hyrdrocarbon Fire & Jet Fire Protection

Pyroclad X1 is the latest breakthrough in epoxy based intumescent fireproofing technology


Mitsubishi Gas Chemical America
Performance Amine 1,3-BAC

A highly reactive cycloaliphatic diamine offering superior performance. Reasonable cost and curing efficacy makes it suitable for all types of epoxy resin applications.


Hempel (USA) Inc.
HEMPEL PROTECTIVE COATINGS

Efficient systems and high quality products to reduce your maintenance costs. Visit Hempel Protective for more information.

 
 
 
Technology Publishing

The Technology Publishing Network

The Journal of Protective Coatings & Linings (JPCL) PaintSquare
Durability + Design Paint BidTracker JPCL Europe

 
EXPLORE:      JPCL   |   PaintSquare News   |   Interact   |   Buying Guides   |   Webinars   |   Resources   |   Classifieds
REGISTER AND SUBSCRIBE:      Free PaintSquare Registration   |   Subscribe to JPCL   |   Subscribe to PaintSquare News
MORE:      About PaintSquare.com   |   Privacy policy   |   Terms & conditions   |   Site Map   |   Search   |   Contact Us
 

© Copyright 2000-2014, Technology Publishing / PaintSquare, All rights reserved
2100 Wharton Street, Suite 310, Pittsburgh PA 15203-1951; Tel 1-412-431-8300; Fax 1-412-431-5428; E-mail webmaster@paintsquare.com